Porgera Joint Venture - Socio-Economic Contribution - Papua New Guinea

The development of natural resources is a principal engine of economic activity in Papua New Guinea (PNG). The Porgera Joint Venture (PJV) is one of the largest resource projects in the country and the largest private sector employer in Enga province.  The mine's economic contribution to PNG gross domestic product (GDP) is approximately 11 per cent and is anticipated to be an estimated 12 per cent of national export earnings over the life of the mine.

The mine is a major employer and generates substantial social and economic benefits for the area. The PJV gives priority to hiring locally and employs 2,500 full-time employees and over 500 contractors. Currently, 93% of PJV employees are PNG nationals, with a majority of those from the Porgera region.

Prior to the mine commencing operations in 1990, residents of the Porgera region had very limited access to health care and education and other vital services.

The PJV invests extensively in community programs to share the benefits of mining, address community needs and strengthen socio-economic development in the region. The mine has contributed approximately US$60 million to vital infrastructure, health care and education and to the construction of roads, bridges, schools and medical facilities that all help to improve the quality of life for people living in this remote region. To date, this funding has supported approximately 470 community projects. A variety of social development initiatives, such as the micro-credit scheme for women, support for childhood vaccination programs and highly successful adult literacy programs, mean many people benefit from mining.

Improving Education

The Porgera mine has built or improved dozens of schools and invested in education and training, including funding for over 665 students through scholarships and grants, since 1990. Long-standing partnerships with the Department of Education in Port Moresby and community leaders have helped to improve the quality and availability of education in the region. For example, in 2006 PJV worked with the community to establish an Adult Literacy Program to address low literacy levels. Today this highly successful literacy program is benefiting 2,500 people in Enga province. 

Building Healthier Communities

A comprehensive HIV/AIDS program that encompasses prevention and treatment is in place serving PJV employees and the wider community at Porgera. The mine has also provided support to the local Paiam hospital and medical clinics, which are helping to address severe shortages in health services. A child vaccination program has helped to address high rates of infant mortality from easily preventable diseases.

More: Modern aid post for PNG community, Beyond Borders, October 2008

Advancing Women's Equality

Through financial support provided to the Porgera District Women's Association, local women are gaining the confidence to address domestic violence and participate in efforts to address law and order challenges in their communities. The mine has also established a micro credit program which, to date, has enabled 181 women to receive loans and become economically self-reliant.  PJV has put in place programs to improve women's literacy (80 per cent of whom are functionally illiterate); to provide scholarships for women and recruit local women to work in non-traditional jobs at the mine.

More: Empowering women in Papua New Guinea, Beyond Borders, April 2009

Improving Skills and Training

Since 1990, PJV has invested over US$40 million in skills training for its PNG workforce. Approximately 3,000 employees have received training in trades and skilled apprenticeships.

Supporting Local Procurement

The operation makes it a priority to purchase goods and services locally to support local business development. In 2007 alone, Porgera mine injected US$342 million into the economy through local services and procurement in PNG.

More: Driving local procurement: Porgera's trucking suppliers go national, Beyond Borders, October, 2008

Economic contribution through taxes, duties and royalties

In 2007, PJV paid approximately US$57 million in taxes, duties and royalties. Since 1994, the mine has contributed over US$525 million in taxes and duties to the PNG economy.